UGG, a unit of Deckers Outdoor Corp. (DECK), in an effort to expand its global presence, inaugurated two new retail stores in Vancouver and Edmonton, which brings the brand’s store count in Canada to nine.

The company’s management stated that the endeavor to expand in Canada is a part of their omni-channel and growth strategy. Additionally, UGG’s store-expansion drive reflects its initiatives to spread out in regions that have considerable growth potential. The company looks for opportunities to grow its store base in order to effectively penetrate into the target markets and foster the brand’s potential.

Further, the Vancouver and Edmonton outlets that will cover an area of 2,300 and 2,200 square foot, respectively, are being opened amid the holiday season, which makes the management optimistic about its decision. The brand, known for its high quality, has always remained a top choice for the customers as it provides them with a wide range of product offering both in-store and online.

The two recent openings will feature 600 SKUs highlighting the efforts to enhance the in-store experience and expand the brand’s product offering beyond footwear by including loungewear, home products and handbags.
 
Moreover, the company offers a customization plan called “Bling It On’’ that allows shoppers to alter their boots, loungewear and apparel through a selection of Swarovski crystal patterns. While, the "Infinite UGG" program will enable consumers to order any UGG product, whether available in-store or not, and get it delivered at their door step free of cost. These programs will surely fetch the brand extra points.

Moving on, Deckers which competes with Nike, Inc. (NKE), seems to be a solid bet for investors as it posted better-than-expected second-quarter fiscal 2015 results, mainly driven by the contribution of the UGG brand. The brand’s net sales rose 23.8% to $417.1 million, primarily on an increase in worldwide wholesale sales, contribution from new retail outlets and surge in global e-Commerce sales, partly offset by decline in comps and international distributor sales.

Currently, Deckers has a Zacks Rank #2 (Buy) as its latest endeavor to enter the new markets looks promising and we also believe that product innovation, cost containment, store augmentation and strong focus on profitable markets have facilitated the company to keep afloat in this soft economic environment.

Other Stocks to Consider

Other stocks that can be considered in the same sector include Skilled Healthcare Group, Inc. (SKH), sporting a Zacks Rank #1 (Strong Buy), and Sequential Brands Group, Inc. (SQBG), carrying a Zacks Rank #2.

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